While the "Fiscal Cliff" looms..............

[spqrzilla]

It does that because the congress decided to raid it starting in the Reagan years. We can end that by raising the ceiling to reflect what todays dollar is worth or take off the cap completely, cut the rate in half and it will be solvent for ever. It is where it is because only the middle class pays the bulk of it. Once you make more than 250K you stop paying into it. So it is a regressive tax structure that hits the poor and the middle class disproportionaly more.

If you are going to raise the cap on contributions, then you'll have to raise the cap on benefits. If not, then its not an insurance system paid for by contributions but an entitlement as you denied earlier.

And you are incoherent again, you don't "stop paying" into social security at the cap. You just don't pay more social security taxes above the cap, you still pay the social security taxes for the base amount. Your benefits are also capped.

[nynco]

If you are going to raise the cap on contributions, then you'll have to raise the cap on benefits. If not, then its not an insurance system paid for by contributions but an entitlement as you denied earlier.

And you are incoherent again, you don't "stop paying" into social security at the cap. You just don't pay more social security taxes above the cap, you still pay the social security taxes for the base amount. Your benefits are also capped.

You don't stop paying into it once you hit the cap? Does a person who makes 1 million pay anymore into Soc Sec than one who makes 250K. No because the CAP is the point where they stop paying into it. So person who pays the full burden at 250K is paying a higher percentage than the person making 1 million.

[brutal]

You don't stop paying into it once you hit the cap? Does a person who makes 1 million pay anymore into Soc Sec than one who makes 250K. No because the CAP is the point where they stop paying into it. So person who pays the full burden at 250K is paying a higher percentage than the person making 1 million.

SS tax is capped on an annual basis and resets Jan 1. Benefit payments are also capped. Regardless of what you make, when you hit the cap, the SS tax deduction stops (Medicare does not.) You have paid in the maximum amount required for "guaranteed" benefits that are CAPPED. Where does this $250k number come from? SS employee tax for 2013 caps at $110,100. It's a 6.2% rate (6.2% SS, 1.45% Medicare) on the first $110,100 whether you make $110,100 or $110,100,100. I'll say that again, 6.2% of $110,100 (2012).

When you withdraw (if you get too), you withdraw based on the amount you paid in over your working lifetime. If you made more than the other guy and maxed every year for say 30 years, you get more benefits, but never more than the max allowed, currently $2,384 for a single wage earner. Whether you made $1Mil every year for 30 years, or just hit the cap each year, you get the same benefit payment. So now does the person that made less, but paid in the same amount benefit more? What part of this don't you understand? Do you read your annual SS statement?